All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.
This transaction is impermissible according to the majority of Muslim scholars because it involves paying compensation by the losers only. This makes the transaction constitutes gambling which is prohibited in Islam. The participants will either win or lose, and this is what gambling is by definition.
Allaah Knows best.